§ 87. Mr. Mawbyasked the Chancellor of the Exchequer whether further arrangements have now been made with the United States Government for the import of tobacco for sterling and for the building of houses for United States forces in this country.
§ Mr. MaudlingYes. We have agreed with the United States Government on a transaction under Public Law 480 involving 5 million dollars' worth of tobacco for sterling. This is a second extension of the transaction announced in June, 1956, and extended in March, 1957, which under the two earlier deals has involved 18 million dollars' worth of 19W tobacco and the arrangements will be identical in character. The proceeds of the transaction will be appropriated to the United Kingdom Defence Budget. The United Kingdom Government for their part will undertake to provide additional houses for United States Service personnel and their families in this country at an equivalent cost. The houses will be let to the United States Authorities at a nominal rent for as long as they are required but will remain the property of the United Kingdom Government. The tobacco will go into companies' stocks and its acquisition will not cause any reduction of United Kingdom purchases of tobacco from Commonwealth countries. We have not accepted any undertakings as to the 50 per cent. shipping requirement in connection with this transaction.